Phoenix Solar Incorporated, a subsidiary of Phoenix Solar AG, filed for Chapter 7 protection with the U.S. Bankruptcy Court in the District of Arizona, case number 17-15240. The Company is located in San Ramon, CA and led by Timothy P. Ryan, President. It is represented in bankruptcy proceedings by Thomas J. Salerno of Stinson Leonard Street.
Phoenix Solar AG, the parent company to Phoenix Solar Incorporated, filed a German Insolvency Proceeding, and the German administrator is Dr. Jur. Michael Jaffe. According to documents filed with the court, “The authorized representative has determined that it is in the best interest of the creditors for Phoenix Solar US to undergo an orderly liquidation process under Chapter 7 of the United States Bankruptcy Code.”
Court-filed documents also note, “Following the drawdown of project-related letters of credit totaling $8 million USD by a large customer of Phoenix Solar Incorporated (the US subsidiary of Phoenix Solar AG) – the parent company Phoenix Solar AG is obligated to reimburse the issuing banks immediately under its existing financial agreements. Such claims exceed the capabilities of the parent company, resulting in the illiquidity of Phoenix Solar AG and forcing the Executive Board to file for insolvency.” Phoenix Solar cites liabilities at $10 to $50 million, with assets at $1 to 10 million.
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